Netflix Shares Face Steepest Decline in Months Amid Bidding War

Netflix Inc. is experiencing its most prolonged losing streak since January 2025, with shares falling for six consecutive trading sessions. The stock has shed 12.79% over this period, reaching its lowest price point since April. This sustained sell-off is directly tied to an intense corporate battle for Warner Bros. Discovery, which threatens to undermine the streaming leader's strategic growth plans.

The offensive was launched by Paramount Global, which made a hostile takeover bid valued at $108.4 billion directly to WBD shareholders. This move jeopardizes a previously announced acquisition strategy by Netflix.

Key Financial Metrics:
* Current Share Price: Approximately $95.36 (down 1.39% on the day)
* Decline from All-Time High: 28.79% below the peak of $133.91 reached on June 30, 2025
* Monthly Performance: Down 11.35% for the current month
* Year-to-Date Gain: Still maintains a 6.99% increase since the start of the year

The core of the market's concern stems from a disrupted acquisition plan. Netflix had initially placed a bid to acquire Warner Bros. Discovery for $82.7 billion. This offer consisted of $27.75 per share, with $23.25 in cash and $4.50 in Netflix stock. The deal was designed to grant Netflix access to Warner Bros.' vast library of film and television content, its production capabilities, and the HBO Max streaming service.

Paramount's counteroffer, however, is a cash bid of $30 per share. To promote this competing proposal, Paramount CEO David Ellison met with WBD shareholders in New York yesterday alongside Chief Legal Officer Makan Delrahim and Chief Strategy Officer Andy Gordon. The bidding window remains open until January 8, and the Warner Bros. Discovery board is required to state its position by December 22.

Should investors sell immediately? Or is it worth buying Netflix?

The contrasting stock performance highlights the market's uncertainty. As Netflix shares have tumbled, WBD's stock price has surged 20.6% over the same five-day span. Investors are apprehensive about the financial strain on Netflix, which would need to shoulder approximately $59 billion in additional debt to finance its proposed deal.

Regulatory Scrutiny and Market Skepticism

Beyond the bidding war, the proposed merger faces significant regulatory hurdles. A combined Netflix and Warner Bros. Discovery entity would command a global subscriber base of around 420 million, controlling an estimated 45% of the streaming market. This figure substantially exceeds the 30% threshold that typically triggers antitrust concerns. Skepticism has also been signaled by the Trump administration.

While analysts at Needham maintain their "Buy" rating with a $150 price target, they caution about risks associated with artificial intelligence and the challenges of integrating the two companies. Morningstar analyst Matthew Dolgin described the acquisition price as "exorbitantly high."

In a significant development, GAMCO Investors CEO Mario Gabelli indicated he would "most likely" sell his clients' WBD shares to Paramount. Market observers agree the battle is far from over. The ultimate outcome of this corporate contest is set to define Netflix's strategic standing in the streaming industry for years to come.